Green tax will be levied on old vehicles from now on
Union Road Transport and Highways Minister Nitin Gadkari has approved a proposal to impose a road green tax on old vehicles that pollute the environment. The Ministry of Road Transport and Road Transport has said it will be sent to the states for consultation before its formal implementation. At the time of fitness certificate renewal on transport vehicles older than 8 years, a green tax of 10 per cent to 25 per cent could be levied on the road tax rate, the ministry said.
Union Minister for Road Transport and Highways Nitin Gadkari approves a proposal to levy a 'Green Tax' on old vehicles which are polluting the environment. Proposal will now go to the states for consultation before it is formally notified: Ministry of Road Transport & Highways
— ANI (@ANI) January 25, 2021
The tax will also be levied on personal vehicles older than 15 years. So, public transport vehicles like city buses etc. will have to pay less green tax. In highly polluted cities, a maximum of 50 per cent green tax can be levied on registered vehicles. However, taxes may vary depending on the fuel and the vehicle.
Apart from this, the tax will not be levied on hybrid, electric vehicles and alternative fuel vehicles such as CNG, ethanol, LPG vehicles. In addition, green tax will not be levied on agricultural vehicles such as tractors, harvesters, tillers etc.